IVA Pros and Cons

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An IVA will enable you to reduce your debts to one affordable monthly sum (based on your budget) which is usually fixed over a 60 month period. Monthly repayments can be as little as £100 per month, and after you have completed the IVA, whatever debt is remaining will be cleared, which could be up to 75%, leaving you debt free. Other benefits of an IVA include:


Disadvantages of IVA:

  • An IVA will have a negative effect on your credit rating making it difficult to obtain credit
  • Failure of an IVA may result in bankruptcy proceeding
  • 5 year period for an IVA compared to a maximum of 3 years with bankruptcy
  • You must be able to afford a monthly payment, usually over a minimum of £100 per month
  • IVAs are usually only suitable for debts over £10,000
  • You will end up paying more back to your creditors than you would in bankruptcy
  • All creditors must be included, you cannot make separate arrangements